Palm | Kelapa Sawit

Palm oil futures ended sharply lower on its 5th day straight losses on weak sentiment. Benchmark Nov09 immediately gapped down RM29 to open at 2168 following the overnight weak closing in CBOT soy complex. Prices then declined through out most of the sessions until it hit intra day low of 2125 in the second session. It then hovered between 2128-2147 and finally settled RM67 lower at 2130. Market sentiment remained weak as Dalian palm edged lower through out the day and ended with more than 2% loss. There was market talk that production is improving this month especially in the area of east Malaysia. A leading analyst from Oil World Mr Thomas Mielke made a statement today, saying that Malaysian palm oil prices are likely to be supported by lower production resulting from dry weather. However, this did not help much in lifting the market sentiment. Meanwhile, eCBOT were not trading today due to US market holiday.